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LiveDeal.com Platform Looks to Control Deal Space with Huge Advantages over Competitors Like Groupon

LiveDeal.com Platform Looks to Control Deal Space with Huge Advantages over Competitors Like Groupon

Written by ι Stock Market Media Group Staff — January 13, 2014

LiveDeal, Inc. (NASDAQ: LIVE) is just getting started in the deal space with the company’s new www.livedeal.com platform, but already it enjoys a great deal of popularity with its users.  It’s a popularity that’s most likely related to a host of advantages that both advertisers and consumers are offered at livedeal.com that they don’t get with the almost $8 billion market cap company Groupon (NASDAQ: GRPN) among others.  So far, there simply is no competition in the cities where the two compete in the $660 billion dining industry.

Hands down LiveDeal is the popular choice for restaurant owners in San Diego, Los Angeles and now San Francisco where there are more restaurants per capita than anywhere in the country.  In San Diego, LiveDeal curates deals for over a thousand restaurants versus just 30 or so using Groupon, and in Los Angeles where the upstart in the space launched in mid-December, hundreds of restaurants appear on the site versus Groupon’s less than 50.  While LiveDeal has chosen the dining industry to introduce its platform, Groupon’s worst nightmare may be that LiveDeal likely won’t stop there.

So, let’s dig into the advantages that LiveDeal holds over Groupon, LivingSocial and other similar sites.  First, for consumers using the site to find deals, livedeal.com is filled with instant offers that a hungry diner can not only see in real-time, but that they can take advantage of immediately.  All deals found on the site are “live” and happening right now.  Unlike Groupon and every other daily deal site, users don’t receive endless emails, and most importantly they’re never asked to enter credit card information to prepay for a voucher.  Additionally, consumers never have to worry about vouchers they’ve purchased expiring.

Instead, consumers can view deals by the hundreds simply by visiting livedeal.com on their mobile device, a laptop or PC, find a deal in their area which is made simple with LiveDeal’s geo-location feature, and then visit that establishment where they’ll transact directly with the restaurant leaving LiveDeal out of the business of collecting any money at all.  This represents not only an advantage to consumers but also for restaurants that are looking to increase business without sharing their already small margins with a group-buying publisher.

The advantages for businesses using livedeal.com’s platform are even greater.  With LiveDeal, restaurants can add a promotion at any time.  It’s not uncommon for other Daily Deal sites taking up to three months at times to feature a restaurant’s promotion on their site, LiveDeal however, gives restaurants a value added service that allows them to manage the traffic coming into their business real-time.  If a restaurant experiences less traffic on Tuesday for instance, or if an establishment has any cancelled reservations on a Thursday night, they can use livedeal.com’s online deal dashboard to create and publish a customized deal to nearby consumers within two minutes.

Most Daily Deal sites like Groupon depend on sheer volume for their success, and their customers prepay for vouchers they’ll use later when they visit the restaurant they’ve chosen.  However, in the dining industry restaurants don’t want a deeply discounted voucher used on their busiest nights, and most restaurants are not equipped to handle hundreds, if not thousands of vouchers on any given night much less during prime business hours.  With LiveDeal, this is never a problem because businesses create and schedule deals only when they need the traffic and they can not only control the amount of traffic they receive, but they can also edit, adjust or stop a promotion when traffic goals are met.

The best advantage livedeal.com offers restaurants could be that they don’t charge a “middleman” fee, so businesses again aren’t squeezed out of their profits.  Because there are no fees paid to livedeal.com, restaurants can pass these savings along to consumers.  It appears by the sheer number of restaurants that are participating on livedeal.com in their early launch cities of San Diego, Los Angeles and now San Francisco that business owners fully realize what a powerful advertising tool they’re being offered.